Yeah, a few times off and on. Not much detail is known on how practical it is now, but down the road maybe?
Interestingly Xenos and R520 seem to be slowly opening this door.
We had a thread/poll on this a week or two ago. It will be an interesting development.
It is my opinion that this type of behavior is planned for DX10 and that eventually GPUs will be taking up these parallel processing tasks, like physics. They are well suited for it, and the overlap between the markets (gamers who want pretty graphics, gamers who want nice physics, gamers who buy new GPUs) is pretty good
I see the death of the PPU already, and its name is the GPU. Only so much room in a case/buyers budget, the GPU consolidating just one more task (like it did vertex processing from the CPU) makes it more vital and important. GPUs are a big part of Vista, I expect in the long run they will rival (gasp!) the CPU on many levels, primarily because it is much more scalable and benefits from parallelization.